The Estonian government has approved the first bill to establish legal requirements for cryptocurrency service providers. Local media reported on the 22nd.
This means that cryptocurrency-related companies will be supervised by the Estonian Financial Supervisory Authority from 2026.
It points out that in 2021, almost half of the world's cryptocurrency service providers, and several thousand companies, were registered in Estonia. However, at present, due to repeated regulatory changes, the number has fallen to 50.
Mathis Maeker, CEO of the Financial Intelligence Agency, said, "What's different from before is that cryptocurrency-related companies will be supervised by the Financial Supervisory Authority. Previously, we only dealt with anti-money laundering requirements, but that was part of the problem in the first place," emphasizing the need to establish new cryptocurrency regulations at this time.
He added, "They are doing something with the funds entrusted to them by customers. This is the problem," and said, "We need to have a system in place that allows customers to withdraw their deposits at the time they want to do so."
In addition to financial crimes, Estonia has also seen the bankruptcy of cryptocurrency-related companies and cyber theft, which has led to an increasing number of citizens losing their assets. In order to prevent this, the Financial Supervisory Authority has begun supervision.
Operational requirements and reporting are becoming increasingly strict. Under the current law, fines of up to 400,000 euros (approximately 65.5 million yen) are set under the Anti-Money Laundering Act, but the new bill increases this to 5 million euros (approximately 820 million yen).
"The Financial Supervisory Authority will start issuing licenses in 2025. Companies that currently have licenses from the Financial Intelligence Unit will have to obtain additional or new licenses from the Financial Supervisory Authority by 2026," explained Finance Minister Mart Võrklaev. He continued, "I believe that any operator who takes this initiative seriously and wants to provide services will be able to obtain a new license."
According to Peeter Koppeli, an economic analyst and CEO of financial investment advisory firm Redgate Wellness, "legalization of the cryptocurrency market will not increase the credibility of cryptocurrencies themselves, because speculators are already making profits from cryptocurrency-related businesses."
He also said, "This is a first step to clean up the environment. It doesn't change the essence, at least for me, and for speculators and retail investors."
Reference: Press
Image: Shutterstock
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